Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday said the process of imposing economic sanctions on Russia is flawed.
Sanctions are not limited to Russian are they are affecting other countries more than the targeted country, he said.
Mian Zahid Hussain said that Russia has been preparing for an invasion of Ukraine for years, raising its foreign exchange reserves to over $650 billion to deal with sanctions, while developing countries were caught unaware and now facing a serious crisis.
Talking to the business community, the veteran business leader said that inflation is rising and the value of the currency is declining in the majority of the countries.
Even the developed countries which have imposed sanctions are being influenced by their decisions and the anger of their people is increasing, he said.
Russia’s oil and gas sector has not been sanctioned, but multinational companies are cutting off investments in the sector, which is fuelling the crisis.
Mian Zahid Hussain added that the energy situation in Pakistan is worse than in many other countries.
When the present government came to power, the circular debt was 1400 billion rupees which is now 2500 billion rupees and by 2025 it will be at least 4000 billion rupees.
He informed that the current government had inherited a gas sector circular debt of Rs350 billion, which has now been increased to Rs650 billion.
According to a report, gas worth four billion dollars is being wasted annually which can be controlled by investing 500 million dollars which if managed the country will not need any IMF loans.
Pakistan is facing multiple challenges and now it is not in a position to avoid bold reforms which are necessary to save the country, he warned.
